15 Apr 2014
USD/JPY and Nikkei still exposed to the downside - FXStreet
FXStreet (Córdoba) - Ivan Delgado, Head of Asian Editors at FXStreet explained that the USD/JPY and the Nikkei are still vulnerable to the downside, but strong supports must be break before a bearish continuation.
Key Quotes:
“On the downside (USD/JPY), a break through 101.20 should expose 100.80 ahead of depper setback near 100.00/20; at this point though. The sense is that we need a catalyst for sellers to make further progress, be it an escalation in the Ukraine crisis or further falls in US stocks or bond yields.
“Technicals in the Nikkei continue to favour a downward bias as per the latest impulsive selling seen last week, which could only be challenged by minor corrective runs”.
“A safer play though, would be waiting for a break lower through 13740, which could pave the way for further losses towards 13,250 in the weeks ahead, likely to weigh on USD/JPY too”.
Key Quotes:
“On the downside (USD/JPY), a break through 101.20 should expose 100.80 ahead of depper setback near 100.00/20; at this point though. The sense is that we need a catalyst for sellers to make further progress, be it an escalation in the Ukraine crisis or further falls in US stocks or bond yields.
“Technicals in the Nikkei continue to favour a downward bias as per the latest impulsive selling seen last week, which could only be challenged by minor corrective runs”.
“A safer play though, would be waiting for a break lower through 13740, which could pave the way for further losses towards 13,250 in the weeks ahead, likely to weigh on USD/JPY too”.